USD/JPY: Bulls back in the game, turns positive at 122.60

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The US dollar fought back control versus the Japanese yen in the early European trades, now pushing USD/JPY to fresh session highs beyond hourly 200-SMA placed at 122.55.

    USD/JPY regains 1h 200-SMA

    Currently, the USD/JPY pair trades flat at 122.60, hovering close to fresh session highs posted 122.66 half an hour ago. The USD/JPY pair caught fresh bid wave heading into the European open, with the prices finally filling in the bearish opening gap witnessed on the back of renewed bout of risk-aversion, spurred by French terror attack news.

    Moreover, the Japanese yen lost complete control as the European traders digest the latest Japan’s Q3 GDP data, which revealed that the economy entered a technical recession. The Japanese economy dived deeper in contraction, falling -0.2% over the quarter, against forecast of a 0.1% drop.

    Meanwhile, the major will track the sentiment on the European stocks, with most regional indices set to dive at open. Focus now shifts towards the US inflation report due tomorrow for fresh cues on the pair.

    USD/JPY Technical levels to watch

    The prices find the immediate resistance at 122.88 (1h 100-SMA) and from there to 123 handle. A breach of the last, the prices would head towards 123.45/50 (Nov 10 High/ psychological levels). To the downside, the immediate support in sight at 122.23 (Today’s Low) below which 122 (round number) would be tested. A break below the last, 121.85 (20-DMA) comes into the picture.
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